What is Life Insurance - Types Life Insurance Policies

Life Insurance Policies: A life insurance policy gives protection to the family in the unfortunate event of death. For life insurance policies the person need to pay a small amount up to certain period and after the maturity of that policy the candidate will get a lump sum amount. Ideally every person should have at least two to three insurance policies. 

The candidates can take the insurance policies depending upon their need. Today there are many insurance policies depending on the variety of needs.

What is Life Insurance:

Life insurance is a great way to help protect your family from the financial worries. We should aware of the importance of a Life Insurance Policy in everybody's life. life insurance is a contract between you and an insurer. It could pay out a cash sum if you die during the length of the policy.

Types of Life Insurance Policies:


1) Term Plan:

The Term plans are the easiest and cheapest solution to life cover. Each and every earning member should have a Term Plan for himself. If income contributes to the daily expenses of the family, then that family would suffer financial loss. Thus having a suitable life cover is extremely important in this case.

2) Whole Life Plan:

If a person is the sole earning member for the family, with dependents, then that person must have a Whole Life plan to cover for your life. If you are the only earning member of the family it is better to take Whole Life Plan in order to avoid financial difficulties. 

3) Decreasing Term Plan:

It is mandatory to have decreasing term plan if you have a loan. This is because, if your die before you repay your loan, then the burden of your loan would fall on your family and they would have to repay the same on your behalf. 

4) Pension Plan:

It is a very form of insurance policies and comes extremely handy when income stops. To create income post retirement, pension is the perfect solution, so that you do not have to stay at the mercy of other members for your well-being.

5) Endowment Policies:

It is for any asset building along with reasonable cover, this type of plan comes very handy, since it provides low interest but assured return. It is basically an investment product for risk averse person who prefers safety of capital than high returns.

6) Unit Linked Insurance Policies (ULIP):

Investment became almost as important as protection and returns are measured as against market performance. Then ULIPs are the best solutions as it provides market linked returns along with death benefits for the insured persons.
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